Friday, August 14, 2015

those with the ears to listen hear the drums of war...,


sgtreport |  Please understand this, China fully understands consumers in the West are tapped out. They can see through the bogus numbers Washington produces and the wonks on Wall St. continually tout. They understand the Western system is built entirely on debt as in I OWE YOU! And they understand the system was set up originally as an “IOU nothing” system! They understand “it’s over”.

I do believe China wants to assume “a” if not THE reserve currency status in the future. They know they possess more gold than the U.S.. Would it not make sense to devalue your currency and even make it undervalued for the start of a new system for competitive reasons? Yes I know, they do not have enough gold to back the yuan currently …at current price. Will they pull a page out of FDR’s playbook and revalue gold higher since they are the largest hoarder in the world? Could they confiscate from their loyal citizens to leapfrog their holdings even further? Remember, the tried and true way(s) out of deflation are to print, devalue (versus neighbors AND gold) and of course go to war. Whether you want to believe it or not, we are now at war both financially and technologically. Unfortunately, financial and trade wars often times turn into hot wars. China just fired a shot heard ’round the world for those listening and it was not a celebratory shot by any means!

To finish, could it be China knows this will end in a complete collapse of the financial markets AND real economies of the world, in particular of the West? They already have the largest productive capacity in the world. Are they going to devalue their currency so it is “competitive” when the reset occurs? Have they stripped the West of their gold reserves leaving China with the greatest “monetary” hoard on the planet? Could there be a better position to be in than having the most “money” and greatest productive capacity …with a middle/lower class of your society numbering in the hundreds of millions needing “stuff” to truly enter the 21st century?